Key Takeaways:
CyrusOne, owned by KKR and BlackRock's Global Infrastructure Partners, is preparing for an initial public offering as early as 2027 that could raise about $5 billion, people familiar with the matter said.
The private equity firms met investment banks including Goldman Sachs and Morgan Stanley last week, with the banks pitching for underwriting roles, the people said, asking not to be identified because the discussions are confidential. The company has not decided how much it plans to raise or what valuation it will seek, though one person said a public listing could raise about $5 billion. BlackRock, KKR, Goldman Sachs and Morgan Stanley declined to comment, while CyrusOne had no comment.
KKR and GIP took CyrusOne private in 2022 in a deal valued at about $15 billion including debt. The operator runs more than 60 data center campuses across the United States, Europe and Japan. An IPO would let the sponsors monetize their investment and give CyrusOne equity capital to pay down debt it borrowed to expand its facilities — a balance-sheet cleanup that could lower interest costs and reduce refinancing risk.
CyrusOne would join a growing pipeline of large data center and AI infrastructure listings. Switch has picked lead banks for a public offering that could value the company at close to $80 billion including debt, while SoftBank-backed SB Energy is preparing for a U.S. IPO that could value it at more than $50 billion. Brookfield-backed data center provider Csquare raised more than $1 billion in its IPO last month.
The deal pipeline reflects a broader shift as private equity and infrastructure investors seek longer-term funding sources for an asset class that keeps attracting demand. KKR raised a record $19.2 billion for its latest infrastructure fund this month and in June launched Helix Digital Infrastructure, a new company with committed capital of more than $10 billion to finance the build-out.
If CyrusOne's IPO proceeds are used primarily to retire debt tied to past and future build-outs, its leverage would fall and interest costs would ease, potentially supporting a stronger valuation than a listing that leaves the debt load largely unchanged. The company has not set a timeline for selecting underwriters or filing with regulators, and the discussions remain at an early stage. The Information previously reported that CyrusOne was preparing to interview banks.
This article is for informational purposes only and does not constitute investment advice.
